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Singapore’s grab-to-list in the US as part of a $ 40 billion SPAC deal

(Bloomberg) – Grab Holdings Inc., Southeast Asia’s most valuable startup, goes public in the United States through the largest ever merger with a blank check company. The Singapore-based startup is believed to have a market value of approximately $ 39.6 billion after merging with Altimeter Growth Corp., the special purpose vehicle company of Brad Gerstner’s Altimeter Capital Management, the companies said in a statement on Tuesday. Grab raises more than $ 4 billion from investors including BlackRock Inc., Fidelity International, and T. Rowe Price Group Inc. as part of the largest U.S. equity offering from a Southeast Asian company giant the first Southeast Asian tech unicorn to be sold via a SPAC to the Goes public and gives him funds for expansion. Grab is trying to capitalize on a US-led SPAC listing boom despite showing signs of slowing down, which is under scrutiny by regulators. “This is definitely one of the best internet companies,” said Gerstner in an interview. “The runway in front of us is very long and very wide for Grab if they continue to run.” The combined company’s shares will be traded on the Nasdaq under the ticker GRAB in the coming months. Altimeter Capital, which coordinated the IPO of Altimeter Growth in September, is investing $ 750 million in the company, about a fifth of the newly raised funds. Combined with a three-year lock-up period on its sponsor stock, this indicates Altimeter’s long-term commitment to the company, said Grab Chief Executive Officer Anthony Tan. Altimeter, which has $ 15 billion under management, has also allocated up to $ 500 million for a conditional investment equal to the total amount of redemptions made by Altimeter Growth shareholders. “From sovereign wealth funds to mutual funds, it is first-class investors who invest in us,” Tan said in an interview. “The world sees the potential of Southeast Asia and how exciting this region is.” Altimeter growth proportions rose about 10% in New York on Tuesday. Grab, the leader in Southeast Asia for so-called super apps for consumer services, expects the addressable market to expand from $ 52 billion in 2020 to over $ 180 billion by 2025. Gross merchandise volume was $ 12.5 billion last year, more than doubling from 2018, despite increased competition from arch-rival Gojek and the pandonavirus pandemic restricting people’s movements. The deal marks a notable turnaround for Grab. Under pressure from SoftBank Group Corp. and other investors, the company had been negotiating a possible merger with Indonesian company Gojek for most of 2020. However, the talks finally collapsed in December and Gojek began talks with Tokopedia, another local internet giant. Tan and Gerstner, both Harvard Business School graduates, discussed a deal earlier this year after being introduced by mutual friends. Just about three months later, they agreed on the record deal. Gerner is no stranger to Southeast Asia, as he worked for the Singapore-based gaming and e-commerce market leader Sea Ltd. has invested. The Tencent Holdings Ltd. Supported Company has grown into a sensation on the stock market since its IPO in New York in 2017. Among companies valued at $ 100 billion or more, the stock has been number 1 in Asia since early last year and is ranked worldwide just behind Tesla Inc. “The US and China have been big investment markets for 20 years, and before Sea, Southeast Asia wasn’t really on the radar of many investors,” said Gerstner, who has been grave since taking over the regional business of Uber Technologies Inc., another company, in the year 2018 pursues he is supported. “Now you have a second company with a market capitalization of $ 40 billion that is listed on the Nasdaq. This is a big moment for global investors realizing the renaissance of the Southeast Asian technology market. “Tan founded Grab in his native Malaysia in 2012 as a taxi app with Hooi Ling Tan, a classmate from Harvard. They started their activities in Kuala Lumpur as MyTeksi and made it possible for users to book taxis. Grab later moved to Singapore before expanding from Indonesia to Vietnam, the Philippines, Cambodia and Myanmar as a hailstorm app. With more than $ 10 billion raised from investors led by SoftBank in eight funding rounds, Grab became Southeast Asia’s largest hailstorm provider before expanding into food delivery, digital payments and financial services in eight countries in the region. On the road to profitability, Grab lost about $ 800 million last year on an Ebitda basis on adjusted sales of $ 1.6 billion. Earnings before interest, taxes, depreciation and amortization are projected to be positive in 2023, reaching $ 500 million this year. The company forecasts average annual sales growth of 42% for the next three years. Adjusted sales were $ 4.5 billion in 2023. According to Grab, the mobility services business is already making money in all markets, while food delivery is in the black in five out of six markets. The company said it had roughly 72% of the Southeast Asian hailship market, 50% of online food delivery, and 23% of payments for digital wallets over the past year. Grab was previously valued at around $ 16 billion, one knowledgeable person said. Among the companies involved in the cash injection, a so-called private investment in public equity (PIPE), are Singapore’s state-owned investor Temasek Holdings Pte, Janus Henderson Group Plc and Nuveen LLC. The expected market value also reflects PIPE and SPAC proceeds of $ 4.5 billion and a $ 2 billion loan, according to Grab. Evercore Inc., JPMorgan Chase & Co., and Morgan Stanley, the Grab advised on the deal. Profit forecasts in paragraph 16.) For more articles like this, visit Sign up now to stay up to date with the most trusted business news source. © 2021 Bloomberg LP

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